Raleigh may have to cut back

Nottingham-based bicycle manufacturer Raleigh Industries could be forced to cut its 1,000-strong workforce as a result of plans by parent company Derby Cycle Corporation to expand in mainland Europe through acquisition. The company operates a strategy of local manufacture and any acquisitions could hit Raleigh’s exports. Raleigh exports about 15% of production to mainland Europe, […]

Nottingham-based bicycle manufacturer Raleigh Industries could be forced to cut its 1,000-strong workforce as a result of plans by parent company Derby Cycle Corporation to expand in mainland Europe through acquisition.

The company operates a strategy of local manufacture and any acquisitions could hit Raleigh’s exports.

Raleigh exports about 15% of production to mainland Europe, although this accounts for a considerably higher proportion of its turnover.

The company’s managing director Mark Todd said this week he could not comment on speculation about future job cuts.

UK-based Derby, the world’s largest bicycle group, has earmarked $250m (£160m) for acquisitions mainly in Europe out of $300m raised in a capitalisation deal.

It has sold 56% of the global business to two US venture capital groups, Thayer Capital Partners and Perseus Capital.

Derby wants to double market share to $1bn within three years. It claims 2% of the global market, worth $25bn annually.

Raleigh dominates the UK market, with around 85% of production sold locally.

The move by Derby could also hit Raleigh’s existing investment programme. It is planing a major spend on plant and machinery to cope with new bicycle models over the next three to five years.